Elon Musk recently decided to lay off the team responsible for Tesla’s electric vehicle chargers. This move has worried some people in the auto industry because they think it might make it harder for EVs from other companies to join Tesla’s charging network.
About 500 people from Tesla’s Supercharger team were told they were being laid off by Elon Musk himself. This news was shared on social media by some of the leaders of the Supercharger team. Lane Chaplin, who used to work for Tesla, shared on LinkedIn that the charging department at Tesla was no longer there.
Reports from tech news sites like The Information and The New York Times said that Musk informed managers about the layoffs through an email.
People in the industry are worried because without a team to support adding vehicles from other automakers, it might be tough for those cars to work with Tesla’s charging stations. However, Ford, which was the first to sign up with Tesla, said it’s still planning to join the network.
General Motors, another big automaker, said they’re keeping an eye on the situation. They want to see how the changes to the Supercharger team might affect things.
Almost all the automakers selling electric cars in the U.S. have agreed to join Tesla’s Supercharger network. This network has the most charging plugs in the country and is strategically placed along highways and travel routes. According to the Department of Energy, Tesla has thousands of fast-charging stations nationwide.
Tesla opened up its network to other companies, which was seen as a big success for the company. But now, with the charging department being cut, there are concerns about how reliable the network will be for EVs from other automakers.
Some experts think Musk might see the Supercharger network as a drain on money, especially as EV sales have slowed down. By cutting costs here, he might be trying to improve the company’s profits.
Tesla hasn’t commented yet on how these layoffs might affect the network. But Musk mentioned on social media that they still plan to expand the Supercharger network, just at a slower pace.
Tesla has been cutting costs recently due to falling sales and lower demand for electric cars. Their stock prices have dropped this year, but they saw a small increase after their earnings report last week.
